Question

Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:

Date	Company	# of Shares	Price per Share
8/15	X Company	1,500	$42
9/25	Y Company	1,250	30
9/30	Z Company	1,000	28

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:

Company	FMV per Share
X Company	$45
Y Company	15
Z Company	23

What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.

Answer 1

Unrealised Gain / Loss on Total Trading for 2018	X Company	Z Company	Total
Number of Share	1,500	1,000	2,500
Purchase Price per Share	$         42.00	$         28.00
Cost Price (A)	$       63,000	$       28,000	$       91,000
FMV per Share	$         45.00	$         23.00
FMV Total (B)	$       67,500	$       23,000	$       90,500
Unrealised Gain / Loss (A-B)	-$   4,500.00	$   5,000.00	$       500.00